Tit - bits

#The Nifty went for a mild correction today, taking help of the global cues.

Photo: Live Mint

Though the Sensex closed below 41000 at 40,979.62 down 162.23 points (-0.39%), the Nifty managed to hold 12,000 levels, to close at 12,031.50 down 66.85 points (-0.55%) on the fear of the rise on death toll due to coronavirus. But China, which is actually the event HORIZON of Cornovirus, the indices there rose for the fifth day in a row as investors risk sentiments underpinned on reports that many people returned to work and businesses resumed operations.
At close, the benchmark Shanghai Composite Index added 1.72%, or 48.42 points, to 2,866.51. The Shenzhen Composite Index, which tracks stocks on China's second exchange, also rose 2.9%, or 48.60 points, to 1,727.24. The blue-chip CSI300 index was up 1.86%, or 71.25 points, to 3,899.78.

The death toll in mainland China rose to 908 as of Sunday, the National Health Commission (NHC) reported on Monday. Meanwhile Beijing said it will continue to shore up economic growth with policy support, including with infrastructure spending, to cushion the pressure from the coronavirus outbreak. 

I feel the  Indian markets have corrected enough due to speculate fear of the spread of coronavirus and from tomorrow the bulls will start to take the upper hand. If you are having 12, 000 Nifty calls, then try to exit in the morning or opening hours, as I believe the Europe will also open in the green, tomorrow. 

#Unusual selling activities have been observed in the scrip of National Fertilisers Ltd (Rs.24.95) with not much apparent negative clue to warrant such a move at this price. With a delivery volume of about 58.54% in the BSE, it is surprising to see large scale selling in the counter. I would therefore, request the SEBI to look into the issue and if necessary take suitable action,  so that the small investors are saved from predators. 

Moreover,  there is a YouTube video which speaks of the debt of the company as of 31st March, 2019 to be around Rs.6401.73 crores, but what it doesn't say is that the company has started to receive money,  against the subsidies due, to the tune of more than Rs.5000 crore. This has brought down the debt substantially during the FY20. Even the BSE website (www.bseindia.com) mentioned that the score of the company has improved from -18 to -3, a remarkable achievement isn't? 

Moreover,  the CEPS of the company as per BSE website is Rs.5.33 and the price to book value is 0.57. With the reduction of debt and with such improved figures, the scrip of NFL should trade above Rs.40, isn't? 

Besides,  NFL reported a 3% increase in its consolidated net profit at Rs.107.11 crore for the quarter ended December, 2019. During the nine months (April -December 2019) of current financial year, the total fertilizers sale rose by 25%  to 43.73 lakh tonnes.

NFL, currently operates five natural gas based urea Plants, located at Nangal, Bathinda in Punjab, Panipat in Haryana and two plants at Vijaipur in Madhya Pradesh.

Therefore, it would be an irony if people lose money investing in this Mini Ratna PSU,  at this price (Rs.24.95), especially when there is hardly much negative news in the fertilizer sector. I hope the scrip to sprint towards Rs.31/32, in the short term. You should continue accumulating the share of National Fertilizers Ltd in market declines, under the watchful eyes of the stock market regulator. 

#There was a block deal in the HSIL (Rs.52.90) counter at Rs.52.85. A buy was given in the scrip today during the trading hours by me, at around Rs.53, for short term targets of Rs.62/65.

#BHEL, Ballarpur Industries, Atlanta, Arvind Fashions, Chamak Holdings, Cochin Shipyard, D B Realty, Greenply, GNFC, Gic Housing Finance and IDBI are among the companies that will release their December quarter earnings on February 11. I had earlier asked all of you to exit BHEL (Rs.38.25),  when nothing much came for the capital goods sector in the Union Budget. After the Q3FY20 results,  we will be able to take decision whether to take fresh entry in the counter or not.

#The stock of Reliance Capital today hit the LC at Rs.7.80. If you remember I had given an exit call in the counter on my last write up, for those who were still holding the scrip after my 1st exit call. With Anil Ambani saying that his net worth is almost zero,  we should be careful in future, before entering ADA group shares.

#Yes Bank Ltd (Rs.37.55) is still under the F&O ban, for February 11. Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit. If you remember I had asked all to book profits when it was trading around Rs.38/39.